BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of June 30, 2015 and December 31, 2014, our holdings included within “cash and cash equivalents” and “marketable securities” were at major financial institutions.

Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation (FDIC) and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks on our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments.

The carrying amount of our equity securities, money market funds, bank certificate of deposits (“Bank CDs”), and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our “cash and cash equivalents” and “marketable securities”:



											Marketable Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated fair Value		Cash and cash equivalents			Current		Long Term
June 30, 2015
Bank deposits	$	65,277	$	—	$	—	$	65,277	$	65,277		$	—	$	—
Money market funds	76,994		—		—		76,994		76,994			—		—
Bank CDs	245		—		—		245		—			245		—
Mutual funds	3,063		—		—		3,063		—			3,063		—
Total cash and equivalents and marketable securities	$	145,579	$	—	$	—	$	145,579	$	142,271		$	3,308	$	—
December 31, 2014
Bank deposits	$	62,997	$	—	$	—	$	62,997	$	62,997		$	—	$	—
Money market funds	66,945		—		—		66,945		66,945			—		—
Bank CDs	244		—		—		244		—			244		—
Mutual funds	3,062		—		—		3,062		—			3,062		—
Total cash and equivalents and marketable securities	$	133,248	$	—	$	—	$	133,248	$	129,942		$	3,306	$	—

As of June 30, 2015, none of these securities had been in a continuous unrealized loss position longer than one year.

(b) Property and Equipment

“Property and equipment, net of accumulated depreciation” consist of the following:



	June 30, 2015			December 31, 2014
Computer hardware and software	$	3,824		$	3,616
Laboratory equipment	609			643
Office furniture	348			344
Leasehold improvements	2,872			2,847
Property and equipment, at cost	7,653			7,450
(Less): Accumulated depreciation	(6,388		)	(6,045		)
Property and equipment, net of accumulated depreciation	$	1,265		$	1,405

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the six months ended June 30, 2015 and 2014, was $0.4 million and $0.7 million in each period.

“Inventories” consist of the following:



	June 30, 2015		December 31, 2014
Raw materials	$	1,061	$	1,507
Work-in-process*	5,216		3,979
Finished goods	2,517		3,714
Inventories	$	8,794	$	9,200

*We have contractual commitments to receive $6.4 million of raw materials for the future manufacture of ZEVALIN (representing strategic long-term supply), with expected delivery in the fourth quarter of 2015. Inventories at June 30, 2015 include $0.8 million of ZEVALIN work-in-process (representing packaged, but unlabeled vials) with expiry in December 2017. We expect to sell our existing and committed ZEVALIN inventory over the next few years. However, if our forecasted ZEVALIN sales or production strategy changes, it could result in a charge in that period to “cost of product sales (excludes amortization of intangible assets)” within the Condensed Consolidated Statements of Operations.

(d) Prepaid expenses

“Prepaid expenses” consist of the following:



	June 30, 2015		December 31, 2014
Prepaid operating expenses	$	2,008	$	3,112
Short term debt issuance costs	680		662
Prepaid expenses	$	2,688	$	3,774

(e) Other receivables

“Other receivables” consist of the (i) amounts we expect to be refunded from taxing authorities, primarily relating to fiscal year 2012 income taxes paid, (ii) amounts we expect to receive related to the CASI promissory note, (iii) amounts we will be reimbursed from our directors and officers insurance carrier, and (iv) amounts we expect to be reimbursed from certain third-parties for incurred research and development expenses.



	June 30, 2015		December 31, 2014
Income tax receivable	$	1,651	$	1,387
CASI secured promissory note (see Note 10)	1,500		—
Insurance receivable	365		—
Research and development expenses - reimbursements due	4,729		4,102
Other receivables	$	8,245	$	5,489

(f) Intangible Assets and Goodwill

“Intangible assets, net of accumulated amortization” consist of the following:



			June 30, 2015
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL indication)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA IPR&D	7,700		—			—			—			7,700		n/a	n/a
BELEODAQ distribution rights	25,000		(1,875		)	—			—			23,125		160	148
MARQIBO distribution rights	26,900		(6,384		)	—			—			20,516		81	57
FOLOTYN distribution rights	118,400		(24,752		)	—			—			93,648		152	119
ZEVALIN distribution rights – U.S.	41,900		(28,871		)	—			—			13,029		123	45
ZEVALIN distribution rights – Ex-U.S.	23,490		(7,966		)	(4,023		)	—			11,501		96	57
FUSILEV distribution rights*	16,778		(7,912		)	—			(7,160		)	1,706		56	6
FOLOTYN out-license**	27,900		(7,747		)	—			(1,023		)	19,130		110	85
Total intangible assets	$	305,668	$	(85,507	)	$	(4,023	)	$	(8,183	)	$	207,955

* On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, and on February 27, 2015, we filed a Notice of Appeal of that decision. On March 6, 2015, the Court of Appeals for the Federal Circuit temporarily enjoined Sandoz International from launching its proposed generic levo-leucovorin products. On April 24, 2015, it was announced that Sandoz has commercialized a generic levo-leucovorin product. These events represented a “triggering event” under applicable GAAP for purposes of evaluating our FUSILEV distribution rights' recoverability as of March 31, 2015. Our impairment evaluation resulted in a $7.2 million impairment charge (non-cash) in the first quarter of 2015, and accelerated amortization expense recognition over the remainder of 2015 for the remaining $2.6 million net book value of FUSILEV distribution rights.

** On May 29, 2013, we amended our collaboration agreement with Mundipharma in order to modify the scope of their licensed territories and the respective development obligations. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and royalty and milestone rates were modified. The modification of our associated royalty and milestone rights constituted a change in the contractual provisions under which we measured our original acquired intangible asset (i.e., FOLOTYN rights). We determined that an impairment charge (non-cash) of the FOLOTYN out-license rights to Mundipharma of $1.0 million resulted from this amendment.



			December 31, 2014
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL indication)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA IPR&D	7,700		—			—			—			7,700
BELEODAQ distribution rights	25,000		(937		)	—			—			24,063
MARQIBO distribution rights	26,900		(4,225		)	—			—			22,675
FOLOTYN distribution rights	118,400		(20,030		)	—			—			98,370
ZEVALIN distribution rights – U.S.	41,900		(27,134		)	—			—			14,766
ZEVALIN distribution rights – Ex-U.S.	23,490		(7,402		)	(2,162		)	—			13,926
FUSILEV distribution rights	16,778		(6,270		)	—			—			10,508
FOLOTYN out-license	27,900		(6,385		)	—			(1,023		)	20,492
Total intangible assets	$	305,668	$	(72,383	)	$	(2,162	)	$	(1,023	)	$	230,100

Intangible asset amortization and impairment expense recognized during the six months ended June 30, 2015 and 2014 was $20.9 million, of which $13.7 million relates to current period amortization expense and $7.2 million relates to the impairment of the FUSILEV distribution rights, compared to $11.4 million of amortization expense, respectively.

Estimated intangible asset amortization expense (excluding incremental amortization from the reclassification of IPR&D to developed technology) for the remainder of 2015 and the five succeeding fiscal years and thereafter is as follows:



Years Ending December 31,
Remainder of 2015	$	13,835
2016	24,256
2017	24,256
2018	24,257
2019	21,651
2020	15,727
2021 and thereafter	58,673
	$	182,655

“Goodwill” is comprised of the following:



	June 30, 2015			December 31, 2014
Acquisition of Talon	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos	5,346			5,346
Foreign currency exchange translation effects	(402		)	(202		)
Goodwill	$	17,995		$	18,195

(g) Other assets

“Other assets” are comprised of the following:



	June 30, 2015		December 31, 2014
Equity securities (see Note 10)*	$	9,676	$	8,501
Supplies	241		234
2018 Convertible Notes issuance costs**	1,826		2,171
Executive officer life insurance – cash surrender value	8,209		6,958
Other assets	$	19,952	$	17,864

* These equity securities were excluded from “marketable securities” (see Note 3(a)) due to our intent to hold these securities for at least one year beyond June 30, 2015, as discussed in Note 10. Unrealized gains from these equity securities were recognized through “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, and were $2.6 million for the six months ended June 30, 2015.

** In April 2015, the FASB issued Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. However, ASU 2015-03 does not impact the recognition and measurement guidance for debt issuance costs. ASU 2015-03 is effective for our annual and interim reporting periods beginning January 1, 2016. Accordingly, we will record a reclassification of our 2018 Convertible Notes issuance costs, from “other assets” to “convertible senior notes” within our Consolidated Balance Sheets, beginning January 1, 2016.

(h) Accounts payable and other accrued liabilities

“Accounts payable and other accrued liabilities” are comprised of the following:



	June 30, 2015		December 31, 2014
Trade accounts payable and other accrueds	$	18,180	$	24,571
Accrued rebates	39,502		41,782
Accrued product royalty	3,009		5,182
Allowance for returns	1,586		1,135
Accrued data and distribution fees	2,729		3,952
Accrued GPO administrative fees	2,843		3,222
Inventory management fee	660		1,110
Allowance for chargebacks	3,314		4,040
Accounts payable and other accrueds	$	71,823	$	84,994

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for GTN estimates (see Note 2(i)) are as follows:



Description	Rebates and Chargebacks			Data and Distribution, GPO Fees, and Inventory Management Fees			Returns
Balance as of December 31, 2013	$	33,967		$	5,373		$	2,900
Add: provisions (recovery)	76,636			21,330			(78		)
(Less): credits or actual allowances	(64,781		)	(18,419		)	(1,687		)
Balance as of December 31, 2014	45,822			8,284			1,135
Add: provisions	38,632			9,636			899
(Less): credits or actual allowances	(41,638		)	(11,688		)	(448		)
Balance as of June 30, 2015	$	42,816		$	6,232		$	1,586

(i) Deferred revenue

Deferred revenue (including current and long-term) is comprised of the following:



	June 30, 2015		December 31, 2014
CASI out-license (see Note 10)	$	—	$	9,959
FUSILEV deferred revenue*	7,039		—
Dr. Reddy's out-license (see Note 13(b)(iii))	462		—
Deferred revenue	$	7,501	$	9,959

* In the first quarter 2015, we deferred revenue recognition for $7.0 million related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a)). The deferral resulted from our inability to estimate the rebate value (with requisite precision) that we expect to offer to our customers later in 2015, in order to compete with the generic levo-leucovorin products.

(j) Other long-term liabilities

Other long-term liabilities are comprised of the following:



	June 30, 2015		December 31, 2014
Accrued executive deferred compensation	$	5,989	$	4,694
Deferred rent (non-current portion)	275		364
Business acquisition liability	—		300
Other tax liabilities	730		730
Other long-term liabilities	$	6,994	$	6,088